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| China steel exports |
Chinese Steel Expands in Middle East Markets
China steel exports to Saudi Arabia surged 41% year-on-year, reaching 4.8 million tons in the first nine months of 2025. Meanwhile, Chinese producers redirected shipments to regions with fewer import restrictions. Long product exports nearly doubled, and semi-finished steel shipments grew sixfold, highlighting aggressive expansion into the Middle East. However, the cancellation of Saudi Arabia’s $500 billion Neom project may influence future demand.
Regional Diversification Supports Chinese Steel Trade
China also recorded strong export growth to the Philippines (+32.5%), Indonesia (+27.5%), and Thailand (+26.8%). In contrast, exports to Vietnam and South Korea declined due to new trade restrictions, falling 24.8% and 6.1% respectively. Therefore, Chinese steelmakers increasingly rely on Southeast Asia and Middle East markets to offset protectionist measures in East Asia.
Overall Export Trends and Market Implications
From January to October 2025, China increased total steel exports by 6.6% to 97.74 million tons. Approximately 45% of shipments went to countries with tariffs or planned restrictions, compared with 54% in 2024. As a result, Chinese producers are strategically reallocating capacity, balancing global trade barriers with emerging market opportunities.
ScrapInsight Commentary
Chinese steelmakers leverage emerging Middle East and Southeast Asian markets to offset East Asian trade barriers. The surge to Saudi Arabia signals strategic diversification, potentially stabilizing prices. Regulatory shifts and megaproject adjustments, like Neom, may influence regional demand and recycling market dynamics.
